FCCPC warns DisCos against disregarding electricity regulations

The Federal Competition and Consumer Protection Commission (FCCPC) has warned electricity distribution companies (DisCos) against flouting regulatory frameworks established to guide the sector.

The Executive Vice Chairman of the FCCPC, Tunji Bello, stated this yesterday in Abuja at a stakeholders’ meeting on electric metre issues. He argued that while it is recognised that Nigeria faced power shortages, the challenge should justify systemic abuses.

“The disregard for robust regulatory frameworks, such as the NERC Meter Asset Provider and National Mass Metering Regulations 2021 and the Customer Protection Regulations 2023, by DisCos is unacceptable and will no longer be tolerated. Going forward, regulatory breaches in the industry will be met with immediate corrective action,” he said.

He noted that the recent announcement by an electricity distribution company concerning the phase-out of the Unistar prepaid metre model with effect from November 14, 2024, poses another challenge for consumers, who may face undue hardship if this transition is mishandled.While faulting the announcement, Bello observed that the process did not follow due process.

“As usual, the announcement was devoid of information on whether consumers will be required to cover the cost of replacing meters. The possibility of consumers being placed on arbitrary estimated billing during this transition is also a concern, as it would violate existing rules. This announcement has understandably caused widespread anxiety among consumers, who are already dealing with significant difficulties within and outside the electricity industry.”

The FCCPC boss said it is troubling to witness consumers being exposed to additional hardship, with minimal information provided by the DisCo regarding transitions in the industry.

He hinted that the commission convened the stakeholders including the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), the twelve DisCos and the manufacturer of the Unistar prepaid meter model to fashion out ways to ensure that every metering process remains transparent and accountable, prioritising the interests of consumers.

Bello insisted that DisCos must bear the replacement costs for their meters without imposing additional charges on consumers adding that the Commission is committed to enforcing strict adherence to regulatory guidelines, ensuring that consumers are neither unfairly charged nor randomly subjected to estimated billing.

“This engagement will also address broader issues surrounding metering in the electricity industry. These include non-reimbursement for meter purchases, delays in meter installation and repairs, estimated billing of customers with faulty meters, consumer exploitation by meter installers, token loading challenges, and inadequate customer service.”

He stated that by Section 17(a) of the FCCPA, the Commission is mandated to ‘administer and enforce’ consumer protection laws, ensuring fairness in market practices.

He maintained that the law also reinforces the commission’s commitment to stand firmly with Nigerian consumers and hold service providers accountable.Unistar Hi-Tech Meters clarified that their prepaid meters, which utilise Card Meter Technology, are upgradeable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently used in distribution networks.